October 23, 2000
Humpty Dumpty
scales marketing wall
Chip maker boosts marketing support in bid for bigger share
of the bag
From Strategy Magazine
You might
call it a bad case of the munchies.
Humpty
Dumpty Snack Foods has an irresistible craving. The Kitchener,
Ont.-based potato chip maker wants a bigger bite of Canada's
$1.4-billion salty snack category - and to this end has undertaken
a major brand revitalization.
The company began the process two years ago, and recently
completed work on the final phase. The past few months have
seen a flurry of activity, including the introduction of new
products and flavours, the updating of the Humpty Dumpty icon
and logo, and the rollout of new package designs.
Humpty
Dumpty currently ranks second in its category, well behind
leader Hostess Frito-Lay. Before this revitalization effort
got underway, the brand received relatively little marketing
support, and was generally perceived as declining, says Lynda
Murray, the company's vice-president of marketing.
Humpty
Dumpty has now made a complete overhaul of its strategic approach,
she says.
In the
past, individual products were marketed more as stand-alone
brands. Now, the Humpty Dumpty name serves as a kind of "super-brand"
that unites the whole range of offerings. On the company's
newly redesigned product packaging, the brand logo and its
familiar anthropomorphic egg icon appear front and centre.
"Being
a smaller player in a very competitive category, we felt there
was more opportunity for us to really build the Humpty Dumpty
brand as opposed to trying to build five or six brands,"
Murray says.
Management
consultant Ihor Saplywyj, director of the retail and consumer
packaged goods practice at Toronto-based PriceWaterhouseCoopers,
says this is the right approach to take if Humpty Dumpty wants
to build credibility and gain share in the salty snack category.
"What
they're doing is resurrecting an old brand [with] a heck of
a lot of equity," he says. "[It's] a smart move."
The company
has also shifted its demographic focus, from the 18-34 age
group it has traditionally targeted, to the 12-24 segment.
This reflects a realization that youngsters influence household
snack food purchases even if they're not the ones spending
the money, Murray says.
To gain
better insight into this youthful target audience, Humpty
Dumpty now organizes monthly meetings with a group of teens,
which gives company executives the chance to test out new
flavours and new product concepts.
Since
the start of this year, the company has moved forward aggressively
on a number of fronts - not least of which was the introduction
of new offerings such as Cheesy Ringolos and Buffalo Wing-flavoured
potato chips. Humpty Dumpty now boasts nearly 30 flavours
across its various product lines, and Murray says the company
can be expected to continue rolling out new additions.
"Really,
innovation is what drives this category," she says. "It's
new and different flavours, products [and] combinations."
As for
the packaging redesign, the most noticeable change, by far,
is the makeover given to the Humpty Dumpty brand icon, a character
based on the well-known nursery rhyme. According to Murray,
he now possesses a knowing smirk meant to convey a more contemporary
sensibility, while staying true his traditional heritage.
("A little bit of attitude, but not too much," is
how she puts it.)
The brand
has also adopted a new positioning line, "Go For More."
Advertising
support for fall includes television spots produced by Sparks
Communications of Kitchener, Ont. Two ads (for the Party Mix
and new Nachos offerings) have already aired - mainly in youth-targeted
programs such as The Simpsons, That '70s Show and Buffy the
Vampire Slayer - and a third will break in November.
The company
is also posting banner ads on youth-oriented Web sites, such
as MuchMusic.com, and has plans now underway for a major on-bag
promotion in partnership with a yet-to-be-named sports franchise.
Sampling
is another key element of the brand effort. In January, the
company will be sending its Humpty Dumpty Humvee ("the
Humpty Hummer") to distribute sample bags at youth events
and retail locations.
Brian
Hillis, a partner with Sparks, says grassroots activities
like these can pay tremendous dividends in the category. "It's
been proven time and time again in the salty snack category
that if you can sample the product, you'll get purchase out
of it," he says.
Humpty
Dumpty currently reaps annual sales of $155 million, through
its distribution networks in Ontario, Quebec, the Maritimes
and New England.
The company
was established in Maine in 1948. Its American and Canadian
operations split a few years later when founders Dorothy and
Phil Cole divorced. (He took the Canadian business, while
she ran the U.S. side.)
In 1994,
the Canadian operation was acquired by a Cambridge, Ont. company
called Small Fry Snack Foods. Earlier this year, Small Fry
also purchased the U.S. business, which had recently filed
for bankruptcy.
On Oct.
2, Small Fry announced that it had rechristened itself Humpty
Dumpty Snack Foods, as part of the overall brand revitalization
effort.
Plans
for the next two years include aggressive expansion in the
U.S. marketplace, Murray says.
The redesigned
packages will hit the stores in the States in January. All
flavours, with a few minor exceptions, will be available south
of the border, along with a new one intended exclusively for
the U.S. market - Sour Cream and Clam.
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